Market Insight | Gold stocks collectively open higher as September rate cut expectations peak, gold price hits another all-time high
Gold stocks collectively opened higher. As of the time of publication, Lingbao Gold rose by 5.11% to HKD 3.7, ZHAOJIN MINING rose by 4.79% to HKD 16.62, SD GOLD rose by 3.74% to HKD 18.32, and Zijin Mining rose by 2.81% to HKD 18.28. On the news front, U.S. inflation further fell below expectations, coupled with frequent dovish remarks from Powell, with market expectations for a rate cut in September almost certain. The CME FedWatch Tool shows that traders predict a 100% probability of a rate cut by the Fed in September, with a 93.3% chance of a 25 basis point cut to the 5.00%-5.25% range. Spot gold has broken through $2475 per ounce, hitting a new historical high once again. UBS strategist Joni Teves stated in a report that with weak economic data and expectations of a Fed rate cut, gold's popularity has surged. "The market is currently above the psychological level of $2400 per ounce. We believe that there is still potential for gold prices to rise, as investors currently hold relatively small positions in gold, leaving room for additional investments."
According to the Wise Finance app, gold stocks collectively opened higher. As of the time of publication, Lingbao Gold (03330) rose by 5.11% to HKD 3.7; Zhaojin Mining (01818) rose by 4.79% to HKD 16.62; SD-GOLD (01787) rose by 3.74% to HKD 18.32; Zijin Mining (02899) rose by 2.81% to HKD 18.28.
On the news front, US inflation further fell below expectations, coupled with Powell's frequent dovish remarks, the market's expectation of a rate cut in September is almost certain. The CME FedWatch Tool shows that traders predict a 100% probability of a rate cut by the Fed in September, with a 93.3% chance of a 25 basis point cut to the 5.00%-5.25% range. Spot gold has broken above $2475 per ounce, hitting a new historical high once again.
UBS strategist Joni Teves stated in a report that with weak economic data and expectations of a Fed rate cut, gold's popularity has surged. "The market is currently above the psychological level of $2400 per ounce. We believe that there is still potential for gold prices to rise, as investors currently hold relatively small positions in gold, leaving room for additional investments."